Skip to main content

Gerstemeier Financial Group, LLC

 
  Chicago: (630) 420-6601 Naples: (239) 330-2584   info@G-FG.com
Client Login

Gerstemeier Financial Group, LLC

  • Home
  • About Us 
    • Our Team
    • Our Fee-Only Approach
    • Our Process
    • Our Clients
  • Our Services 
    • Overview & Fees
    • Financial Planning
    • Investment Management
    • Group Retirement Plans
    • Tax Planning and Preparation
  • Resources 
    • Useful Websites
    • Financial Calculators
    • GFG In The News
  • Blog
  • Contact
  • Buy Our Book
  • GFG Disclosure

    You are here

  1. Home
  2. Blogs
  3. Investors Beware: The Media Noise can be Deafening

Investors Beware: The Media Noise can be Deafening

Submitted by Gerstemeier Financial Group, LLC on October 27th, 2017

Most people would argue that living in a digital world, with instant access to an endless stream of information has made us smarter and more self-empowered than past generations. Investors believe that it has “leveled the playing field”, enabling them to make investment decisions based on the same information once only available to the investment pros. The incessant quest for information has reached such a fever pitch that the media outlets, including the cable channels, print media, and now the blogosphere, are churning out content 24/7, and it still isn’t enough to satiate peoples’ ravenous appetite for information. So, it’s all good? WRONG.

There is a much stronger argument that can be made that, for people in general and investors especially, information overload not only makes it more difficult to make rational decisions, it often leads to behavior that can be harmful, if not devastating to your financial health. While there has obviously been a marked increase in the quantity of information, the quality of the information will always be in question. Where you have quantity without quality, all you really have is “noise.” And for people who really should be listening for legitimate financial advice and relevant information, it can be deafening.

With most of the population wired to the Internet and mobile devices, information has become so ubiquitous that it has become an entitlement for people who take its availability for granted. The media is taking full advantage of that entitlement attitude to layer on as much content as it thinks the public can consume. In order to attract the attention of a pre-occupied public, and therefore the advertising dollars its viewership generates, the information has to be entertaining, pithy, and compelling. To that end, the media has no fear or shame in hyping a story beyond a reasoned reality, in order to make its information more essential.

In the investment arena, stories can’t be compelling, or entertaining, for that matter, unless they are consequential in the short term. In other words, the Facebook IPO, even though it was of little actual consequence to most investors, is a much more compelling story than an essay on the long-term performance of index investing, even though it could benefit the vast majority of investors. The problem is that the information we, as investors, receive is filtered through an “excitability” gauge. Can you imagine an analyst or stock guru spending 20 minutes on CNBC talking about the 5-year growth prospects of the stock market and how a diversified portfolio has the potential to outperform the market? Three-quarters of the audience would switch over to the food channel where they could find much more “consequential” information.

Unfortunately, access to more information and technology has not improved investor performance over the last couple of decades. While we’re not suggesting that you should turn off your cable news or refrain from surfing investment sites, you do need to remind yourself that these sources of information don’t necessarily share your agenda. Gathering information and educating yourself are essential parts of the process, but it should be done in the context of your clearly-defined objectives and a well-conceived financial plan.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The company names mentioned herein are for educational purposes only and not a recommendation to buy or sell that company nor an endorsement for their product or service.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2015 Advisor Websites.

Book a Meeting

Tell a Friend

Looking to learn more?

Get in touch today

Contact Us

Additional info

  • Sitemap
  • Legal, privacy, copyright and trademark information

Contact info

  • Chicago Area Office
  •   1415 22nd Street, Tower Floor, Oak Brook, IL 60523
  •   (630) 420-6601
  • Naples Area Office
  •   7024 Pelican Bay Blvd., F-301, Naples, FL 34108
  •   (239) 330-2584
  •   info@G-FG.com

Gerstemeier Financial Group, LLC (GFG) is a registered investment advisor with the Securities and Exchange Commission (SEC). GFG does not provide any personal financial advice via this web-site. The purpose of this site is to provide general background information about the services GFG offers. At certain places on this web-site, live "links" to other web-sites are available. Such external web-sites contain information created, published, and maintained by institutions independent of GFG. GFG does not endorse, approve, certify, or control these external web-sites and does not guarantee their accuracy or completeness. This site is not intended to solicit or offer to sell investment advisory services to residents of any state in which GFG is not currently authorized to do so. Form ADV Part 2 and Part-3, which describes the business practices, services offered, and related fees of GFG, is available upon request. The information on this site was compiled from sources believed to be reliable, however we do not guarantee its accuracy or completeness.

© 2025 Gerstemeier Financial Group, LLC. All rights reserved.

Website Design For Financial Services Professionals